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31.08.202601:30:00UTC+00China’s Composite PMI Edges Up in August, Hinting at Slight Improvement but Still in Contraction

China’s composite Purchasing Managers’ Index (PMI) inched higher in August 2026, rising to 49.5 from 49.3 in July 2026, according to data updated on 31 August 2026.

Despite the uptick, the indicator remains below the 50-point threshold that separates expansion from contraction, signaling that overall economic activity in China continues to contract, albeit at a slightly slower pace than in the previous month. The modest improvement suggests some stabilization in business conditions, but not yet a return to broad-based growth.

The back-to-back readings below 50 in July and August point to ongoing headwinds for both manufacturing and services, with investors likely to watch upcoming data closely for clearer signs of a turnaround in China’s economic momentum.

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